Cyprus Deal Rattles Markets

Global markets slumped Monday after the weekend's news that Cyprus would tax all of its bank depositors to help fund its bailout. Katie Martin reports. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... we all know we can run for you ... but now ... he's at Cypress instigating a bailout but that some really harsh conditions in there ... that rattled markets globally from Beijing to New York to London ... everything was a sea of red overnight with the futures markets overnight here in New York ... coming back a little bit now what is it all mean Katie Martin joins us from London ... Luk a doubling down thirty points lower as the name Aomori while lower ... you can also be drama about the no ... name ... been quite a few days at the hearing that NUM quite expensive at the time as people are less affected than going in and so what happened with the Cyprus bailout until ... now most supplementary went back to bed but mentally is shaved and them ... the market reacted to with some stunning like Sheffield in all the great kind of Bakken ... and their axes to the needs of the bailout which unfolds ... imposing a levy on deposit since we have this is a whole new ground for Europe we haven't done is to fold hands ... the Fed on conditions such as they Amin facts them on the proposal ... as of the deal will save this will be slapped with our identity ... that is every bit of every size weapons that we as an orphan is a little savers and business is so wet the bed in a ... great big accounts etc all still excited this ... went down with some certain degree of surprise on ... an Asian markets this morning and it's a pretty Jackie prissy an awning um the year I felt I had the against the yen for example an Olsen that narrative the film A ... panel that prissy messy for a while the Asian markets weakened by the look of this until an issue said the nation's stocks falling as well ... um but at this in this era of sweat has been much comment ... momentum is is tied up and I know my answer to this question is ... but the lawyers detail as to how much of this is tied up in how well ... the Europe rocked the European leadership over there ... can convince people that this is just about Cyprus ... no bank runs no depositors are gonna be anywhere else ... I mean they're setting a precedent ... how much can they convince the market that they're not setting a precedent ... as I say if any show and what they said about Cyprus is that it's unique is that it's a special case but the problem is we've had this before with other forms of than we have seen ... some evidence of bailouts that have been very disruptive them up its ... crop up again and again so fast that can send him ... and take a moment example is saying today the problem the way it ... affected the ratings because this is the can says that it ... could set a precedent that opens Pandora's box ... and even in ... the times that the that the Vatican for the full extent of get Olsen said the undead with a much smaller hit this blog post to the puppy was uneven and hit the smallest because it is ... it doesn't matter that still cross the line is so common ... that they should be a massive surprise we did have some kind of sense ended last week that some kind of that beyond a post to be possible ... if the fact that the night that I think that it is in the bake shop in Europe ... and ... the FSA as soon as your call to action and yes it's kind of Modelo's Fadel bones read its ... euro zone total suppression but it will stabilize pretty creepy that read that ... and I think that a communiques ... yet this is bad news if you happen to be in Cypriot banks can hold of a property when you read pace across the rest of years and ... not just because the euro crisis saying this is the one off because the CP banking sector is completely different and banking ... across the rest of the euro cents is very difficult to compare apples with apples ... I also swept bearing in mind this is helping treat to buy Marcussen Abah was pretty as a systemic shock ... as I say the year at the very heavy against the yen but man example of the dollar than the full taking heavy against the yen and a recovered very quickly ... that this was treat it as a period of euro weakness not as a E ... O Michael bomb to the hills hundred men into new markets it and that does kind of matched intended to save the nation that we've seen estimates ... French pm ... the question is ... we'll then that the impasse by the Cypriot Parliament snow at this mom money is saying yes it will buy probing a wonderful Medicine issued a full with that made everyone come full comment breakfast damping effect today in Europe ... um but nonetheless something will get past because of the end of the day it difficult to do something an estimate break it to them by the European authorities in the house to be some kind of to post ... a contribution to that to this at a price that's ... um so they would make something happen ... but then what happens after that we're decreasing saying if you have an offshore bank accounts in Cyprus what would you do that he paid a flat fee ... it's pretty easy contagion to drill but didn't ... think steady near its end why it's ... fine crumb nine ... now are I ... hope it stays that way Kmart they rush ... to work a lot over in Europe this week and is error free